3-Year Return on Invested Incremental Capital (3-Year ROIIC %) measures the change in earnings as a percentage of change in investment over 3-year.
Australian Ethical Investment's 3-Year ROIIC % for the quarter that ended in Jun. 2025 was 83.09%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
ASX:AEF's 3-Year ROIIC % is ranked better than 88.62% of 650
companies
in the Asset Management industry
Industry Median: 2.27
vs ASX:AEF: 83.09
Australian Ethical Investment (ASX:AEF) 3-Year ROIIC % Explanation
Return on Incremental Invested Capital (ROIIC) is an extension of Return on Investment Capital (ROIC). ROIC % tells investors how efficiently that profitability is earned per dollar of company capital. ROIIC narrows the focus even further and shows how profitable each additional unit of capital investment could be. ROIIC % is a more powerful metric than ROIC because it measures how much money the company can generate going forward on future capital investments.
High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
Be Aware
It's important to keep in mind that when tracking ROIIC, the metric is better suited to forecasting the trend of future returns rather than measuring current return on investment.
Australian Ethical Investment 3-Year ROIIC % Related Terms
Australian Ethical Investment 3-Year ROIIC % Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Australian Ethical Investment 3-Year ROIIC % Chart
ASX:AEF vs BLK, BX, KKR: 3-Year ROIIC % Comparison
For the Asset Management subindustry, Australian Ethical Investment's 3-Year ROIIC %, along with its competitors' market caps and 3-Year ROIIC % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Australian Ethical Investment 3-Year ROIIC % vs Asset Management Industry
For the Asset Management industry and Financial Services sector, Australian Ethical Investment's 3-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where Australian Ethical Investment's 3-Year ROIIC % falls into.
3-Year Incremental Net Operating Profit After Taxes (NOPAT)**
/
3-Year Incremental Invested Capital**
=
( 20.6151099 (Jun. 2025) - 9.676667 (Jun. 2022) )
/
( 31.843 (Jun. 2025) - 18.679 (Jun. 2022) )
=
10.9384429
/
13.164
=
83.09%***
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
** Annual data of NOPAT and Invested Capital was used to calculate 3-Year ROIIC %.
*** Please be aware that the ROIIC (Return on Invested Capital) calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
Australian Ethical Investment (ASX:AEF) has a 3-Year ROIIC % of 83.09 as of Jun. 2025. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Australian Ethical Investment and its competitors. This is near median its historical median of 80.24. According to the industry distribution chart, Australian Ethical Investment ranks #74 out of 650 companies in the Asset Management industry, placing it in the top 11.4%.
Is Australian Ethical Investment's 3-Year ROIIC % too high?
Australian Ethical Investment's current 3-Year ROIIC % of 83.09 is near median its 10-year median of 80.24. The Asset Management industry median 3-Year ROIIC % is 2.27. Australian Ethical Investment's value of 83.09 is 3560.4% above this industry median. Based on the distribution chart, Australian Ethical Investment ranks #74 out of 650 companies in the Asset Management industry, which is in the top quartile — a strong position relative to peers. Overall, Australian Ethical Investment has a GF Score™ of 100/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Australian Ethical Investment's 3-Year ROIIC % compare to BLK and BX?
According to the Asset Management industry distribution chart, Australian Ethical Investment ranks #74 out of 650 companies for 3-Year ROIIC %. This places Australian Ethical Investment in the top 11% of its industry — outperforming the majority of peers. The industry median 3-Year ROIIC % is 2.27. Australian Ethical Investment's value of 83.09 is 3560.4% above this benchmark. While the company's 10-year median is 80.24 vs. the industry median of 2.27, Australian Ethical Investment has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 3-Year ROIIC % for an Asset Management company?
The median 3-Year ROIIC % among Asset Management companies is 2.27, based on 650 companies in the industry. Companies in the top quartile (top 25%) have a 3-Year ROIIC % significantly above this median, while those in the bottom quartile fall well below. However, 3-Year ROIIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Australian Ethical Investment's current 3-Year ROIIC % of 83.09 is 3560.4% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high 3-Year ROIIC % mean?
A high 3-Year ROIIC % can signal that a stock is expensive relative to its fundamentals. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Australian Ethical Investment and its competitors. For the Asset Management industry, the median 3-Year ROIIC % is 2.27 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Australian Ethical Investment's current 3-Year ROIIC % is 83.09, which is near median its own 10-year median of 80.24. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Australian Ethical Investment stock overvalued right now?
Based on GuruFocus' analysis, Australian Ethical Investment (ASX:AEF) is currently considered Possible Value Trap. The stock's GF Value™ is A$6.37, compared to a current price of A$4.39 — trading 31.1% below its estimated fair value. The current 3-Year ROIIC % is 83.09, which is near median its 10-year median of 80.24 and 3560.4% above the Asset Management industry median of 2.27. Australian Ethical Investment's overall GF Score™ is 100/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 3-Year ROIIC % calculated?
3-Year ROIIC % is calculated from a company's financial statements. For Australian Ethical Investment (ASX:AEF), the current 3-Year ROIIC % is 83.09 as of Jun. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Australian Ethical Investment (ASX:AEF) Overvalued in 2026?
Based on GuruFocus' analysis, Australian Ethical Investment stock appears to be undervalued.
The current stock price of A$4.39 is trading 31.1% below its estimated GF Value™ of A$6.37.
GuruFocus considers Australian Ethical Investment to be Possible Value Trap.
Key valuation signals for ASX:AEF:
3-Year ROIIC %: 83.09 (near median its 10-year median of 80.24)
GF Value™: A$6.37 vs. price of A$4.39 (31.1% below fair value)
Industry Position: 3560.4% above the Asset Management median (#74 of 650)
No single metric tells the full story. See the ASX:AEF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Australian Ethical Investment Business Description
Australian Ethical Investment Ltd is an Australian-based company engaged in the operating segment of Funds Management. The company is involved in acting as the responsible entity for a range of public offer ethically managed investment schemes and acting as the Trustee of the Australian Ethical Retail Superannuation Fund (Super Fund). The various products offered by the company are Super, Managed funds, ETFs, Insurance, and Pension.
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